Finnews Q3

Results for company name: FIN-NEWS
Decision Inputs for Quarter Number 2

Company Operating Decisions
Units to be produced
100,000
Div. per common share
$0.00
Demand/price forecast
$0
Investment Decisions
Short-term investment
Machine units bought
Project A
$0
0
no
Financing Decisions
Short-term loans
$0
Two-year loans
$0
Three-year loans
$0
Ten-year bonds
$0
Special Options
Strike settlement (per hr.)
$0.00
Quarterly Performance Report
Quarter Number 2
Sales revenue ( 104,001 units at $100.00 )

Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 12,426 at $70.78 )
Materials
1,500,000
Direct Labor
3,500,000
Total Direct Costs

Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
5,000,000
28,400
478,125
1,300,000
200,000
2,006,525
Production Costs ( 100,000 at $70.07 )

Goods Available for Sale ( $70.14 per unit )
Less: Ending Inventory ( 8,425 units )
Cost of Goods Sold
Gross Profit
Selling and administrative expenses
Financial Expenses:
Short Term Bank Interest
Penalty Loan Interest
$0
0
Intermediate Term Loan Interest
83,030
Bond Interest
33,600
Bond Redemption Costs

Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income Tax (rate is 10%)

Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.00 per share )
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 2
ASSETS
Current Assets
Cash
1,213,213
Marketable Securities
200,000
Accounts Receivable
6,968,067
Inventory ( 8,425 units at $70.14 /UNIT )
590,964
Total Current Assets
8,972,242
Fixed Assets (net of depreciation

Machinery and Equipment
Plant
1,530,000
17,355,250
Total Fixed Assets
18,885,250
Total Assets
27,857,492
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable
Short Term Loans Payable
520,000
0
Short Term Penalty Loan
Intermediate Term Debt Maturing
1,550,000
Bonds Maturing
1,200,000
Total Current Liabilities
3,270,000
Long Term Liabilities

Intermediate Loans: 2 years
625,000
3 years
Bonds
0
900,000
Total Long Term Liabilities
1,525,000
Total Liabilities
4,795,000
Owners' Equity
Preferred Stock ( 0 shares )
Common Stock ( 1,280,000 shares )
Retained Earnings
0
18,177,460
4,885,032
Total Equity
23,062,492
Total Liabilities and Equity
27,857,492
Summary Data
Quarter Number 2
HISTORICAL INFORMATION
Common share price
Quarterly EPS
Price earnings ratio
Actual unit price
65.51 Accumulated Wealth

1.03 Dividend Yield
15.83 Marketable Security Yield
101.65 Actual unit demand
Preferred stock price
41.63 Preferred dividend yield
Return on investment
19.01% Return on equity
Call premium: preferred
8.00% Bond call premium
Common tender or sell/sh
36.35 Unpaid preferred dividend/share
Outstanding debt yields:
Short-term
2-year loan
3-year loan
2.00%
3.11%
2.50%
INFORMATION FOR FUTURE QUARTERS:

3
91,414
108,024
Price per unit forecast
99.19
108.23
Units of plant capacity
100,000
140,000
Units of machine capacity
100,000
75,000
Other overhead
200,000
200,000
Depreciation: Machinery
478,125
384,375
1,300,000
1,874,500
2-year
312,500
312,500
3-year
300,000
Bonds
300,000
300,000
Units forecast
Projects
Plant
Principal repayment on debt:
Short-term
Warehouse fees:
Units
First 2000
Units
First 2000
Cost/Unit
Production costs per unit next quarter:

Materials
15
Units
Machinery
First 60,000
Next 40,000
39
29
Short-term
2-year loan
3-year loan
1.81%
1.76%
1.70%
Labor cost
Rates on funding in quarter 3
Interest due next quarter:

Short-term
Intermediate
65,812
Bonds
29,400
Capital budgeting projects for next quarter:

Life
Cost
2-yr
499,248
3-yr
482,424
ber 2
Per unit price

Advertising cost
Sales discount
Risk of S-T investment

Units of plant bought
Project B
0.00%
0
40,000
no
Common shares
280,000
Dollar penalty
10,400,100
879,492
$0
Preferred shares
Common tender price
2,571
$100.00
10,402,671
$40
$0
7,006,525
7,886,016
590,964
7,295,053
3,107,618
1,520,005
116,630
1,636,635
1,470,983
0
1,470,983
147,098
147,098
1,323,885
0
1,323,885
0
1,323,885
11,240,000.00
65.61
0.00%
1.29%
102,285
2.40%
22.96%
8.00%
$0.00
Bonds
Penalty loan
1.40%
8.00%
100,599
116,094
104.91
100.22
120,000
90,000
60,000
60,000
200,000
200,000
311,250
311,250
1,563,500
1,242,000
0
312,500
312,500
300,000
300,000
Next 5000
Over 7000
Next 5000
Over 7000
52
Plant
359
Next 20,000
Over 120,000
25
33
Bond
Preferred
1.59%
2.17%
Unit CapacityOverhead Saving Unit Labor sav., Qtr.3
Change/Qtr. Labor Sav.
100,000
13,320
0.62
0.01
120,000
-8,254
0.8
-0.01

100,000
$0.00
$0
Per unit price

Advertising cost
Sales discount
Project A
$0
Short-term loans
Two-year loans
Three-year loans
Ten-year bonds
$0
$0
$0
$0
$0.00
0
no

Project B
Financing Decisions
Preferred shares
Common shares
Common tender price
Special Options
Dollar penalty
$100.00
$0
0%
0
40,000
no
$
$
$40
$0
280,000

Quarter Number 2
Sales revenue ( 104,001 units at $100.00 )
Cost of Goods Sold:
Beginning Inventory: ( 12,426 at $70.78 )
Materials
Direct Labor
Total Direct Costs
Warehousing Costs
Plant
Production Costs ( 100,000 at $70.07 )
Goods Available for Sale ( $70.14 per unit )
Less: Ending Inventory ( 8,425 units )
Cost of Goods Sold
Gross Profit
Operating Income Before Interest and Taxes (EBIT)
Financial Expenses:
Bond Interest
Extraordinary Items
Income Before Taxes
Income After Taxes
$
$
$
$
$
$
10,400,100
2,572
879,492
$
$
$
7,006,525
7,886,017
590,964
1,500,000
3,500,000
$
5,000,000
2,006,525
28,400
478,125
1,300,000
200,000
$0
$
$
$
$
Position Statement
Quarter Number 2
ASSETS
Current Assets
$
$
83,030
33,600
-
Cash
Accounts Receivable
Inventory ( 8,425 units at $70.14 /UNIT )
Plant
Total Fixed Assets
Total Assets
Current Liabilities
Accounts Payable
Bonds Maturing
3 years
Bonds
Total Liabilities
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,213,213
200,000
6,968,067
590,964
$
8,972,244
$
$
18,885,250
27,857,494
3,270,000
$
$
1,525,000
4,795,000
$
$
23,062,492
27,857,492
1,530,000
17,355,250
520,000
1,550,000
1,200,000
625,000
900,000
Owners' Equity
Retained Earnings
Total Equity
$
$
$
18,177,460
4,885,032
10,402,672
$
$
$
$
7,295,053
3,107,619
1,520,005
1,587,614
$
$
$
$
$
$
$
$
$
$
116,630
1,470,984
1,470,984
588,394
882,590
882,590
882,590
Summary Data
Quarter Number 2
Common share price
Quarterly EPS
Actual unit price
Preferred stock price
Common tender or sell/sh
$
$
$
$
$
Short-term
2.002%
65.51
1.03
15.83
101.65
41.63
19.010%
8.000%
36.35
2-year loan
3.110%
3-year loan
2.500%
$
$
$
$
4
108,024
108.23
140,000
75,000
200,000
384,375
1,874,500
$
$
$
$
312,500
300,000
First 2000
1.00
Materials $
Units
Labor cost $
15.00
First 60,000
39.00 $
Machinery
Next 40,000
29.00
Short-term
1.810%
2-year loan
1.755%
Units forecast
Price per unit forecast
Units of machine capacity
Other overhead
Projects
Plant
Short-term
2-year
3-year
Bonds
Warehouse fees:
Units
Cost/Unit
$
$
$
$
3
91,414
99.19
100,000
100,000
200,000
478,125
1,300,000
$
$
$
$
312,500
300,000
300,000

Short-term
Intermediate
$
$
65,812
3-year loan
1.701%
Bonds
A
B
29,400
Life
2-yr $
3-yr $
Cost
499,248
482,424
Direct Labor Cost Table

Range of Production
0 to 60,000
60,000 to 100,000
100,000 to 120,000
120,000 and up
Warehousing Cost Table
Inventory Levels
0 to 2,000
2000 to 7,000
7,000 and up
y Data
umber 2
Accumulated Wealth
Dividend Yield
Marketable Security Yield
Actual unit demand
Preferred dividend yield
Return on equity
Bond call premium
Unpaid preferred dividend/share
65.61
0.000%
1.286%
102285
2.400%
22.960%
8.000%
$0.00
Bonds
1.400%
Penalty loan
8.000%
UTURE QUARTERS:
$
$
$
$
5
100,599
104.91
120,000
60,000
200,000
311,250
1,563,500
$
$
$
$
312,500
300,000
$
$
$
Bond
1.593%
$
$
$
$
6
116,094
100.22
90,000
60,000
200,000
311,250
1,242,000
$
$
$
$
312,500
300,000
Next 5000
3.00 $
Over 7000
8.00
52.00
Next 20,000
25.00 $
Plant
Over 120,000
33.00
Preferred
2.171%
Rs. 359.00
Unit Capacity Overhead Saving Unit Labor sav., Qtr.3

Change/Qtr. Labor Sav.
100,000 $
13,320.00 $
0.62 $
0.01
120,000 $
(8,254.00) $
0.80 $
(0.01)
Direct Labor Cost Table

Marginal Cost/Unit
$
$
$
$
Warehousing Cost Table
Marginal Cost/Unit
$
$
$
39.00
29.00
25.00
33.00
Direct Labor Cost

$
3,822,000
$
3,442,000
$
3,450,000
$
3,274,000
Warehouse Cost
1.00 $
10,028
3.00 $
26,084
8.00 $
41,224
Production Plan for next 4 Quarters

3
4
8,425
10,028
98,000
100,000
96,397
105,797
10,028
4,232
Beg. Inv
Production
Est. Sales
Ending Inv
Over Prod Limit

Production Capacities
Plant
Existing
1st Addition
2nd Addition
Total
Machines
Existing
1st Addition
2nd Addition
3rd Addition
Total
5
4,232
120,000
105,248
18,984
Over Prod Limit
6
18,984
100,000
116,094
2,890
Over Prod Limit
100,000
140,000
120,000
60,000
90,000
60,000
150,000
100,000
140,000
180,000
100,000
75,000
20,000
60,000
20,000
-
100,000
95,000
80,000
60,000
20,000
80,000
Purchases
Plant
Units
Cost
60,000
21,790,000 $
Machinery
Units
Cost
20,000
1,040,000 $
Total Cost
22,830,000 $
Unit Sales Forecasts

4 Quarter
3 Quarter
2 Quarter
1 Quarter
Exp. Sales
108,024
91,414
96,397
100,599
108,024
105,797
116,094
100,599
116,094
105,248
116,094
Unit Price Forecasts

4 Quarter
3 Quarter
2 Quarter
1 Quarter
$
$
$
108.23 $
99.19
$
104.91 $
108.23
100.22 $
104.91
100.22
Exp. Sales
101.90
107.23
103.50
100.22
Issuing Stock
Common Stock:
Current Stock Price:
# of Shares Outstanding:
Current Common Stock
Cash Value
# of Shares Offered:
65.51
1,200,000
$ 18,177,460.00
Per Share Reciepts

$
Total Cash Inflow From
Stock Issue:
$
Total Shares
Outstanding After
Issue Decision:
1,200,000
Total Cash Value of
Stock After Issue
Decision:
$ 18,177,460.00
Proforma Decisions for next quarter

Quarter Number 3
Assumptions for next quarter (Not part of the decision set)
Next Quarter
3
Units Sold (assumed)
96,397
Price per unit (assumed)
$
100.00
Return of marketable securities
1.33%

98,000
N/A
Per unit price

Advertising cost
Sales discount
Project A
20,000
0

Project B
Financing Decisions
Short-term loans
Two-year loans
Three-year loans
Ten-year bonds
$
$
Preferred shares
Common shares
Common tender price
Special Options
N/A
Dollar penalty
$100.00
N/A
0%
0
60,000
0
$
$
$
N/A
Proforma Quarterly Performance Report

Quarter Number:
Sales revenue
Cost of Goods Sold:
Beginning Inventory: (units @ $ per unit)
Materials
Direct Labor
Total Direct Costs
Warehousing Costs
Plant
Production Costs (units @ $ per unit)
Goods Available for Sale (units @ $ per unit)
Less: Ending Inventory
Cost of Goods Sold
Gross Profit
Earnings before intrest and taxes (EBIT)
Financial Expenses:
Bond Interest
Extraordinary Items
Income Before Taxes
Income Tax
Income After Taxes
Preferred Stock Dividends
Common Stock Dividends
3
96,397
$
$
$
$
$
$
8,425 $
1,470,000
3,442,000
$
41,224
478,125
1,300,000
200,000
$
98,000 $
106,425 $
10,028
$
$
$
$
$
9,639,700
2,656
70.14 $
590,964
4,912,000
2,019,349
70.73 $
70.68 $
$
476,303
65,812
29,400
-
1,200,000 shares outstanding
Position Statement
Quarter Number:
ASSETS
Current Assets
$100.00 $
$
6,931,349
7,522,313
708,797
Cash
Accounts Receivable
Inventory
Fixed Assets (net of depreciation)
Plant
Total Fixed Assets
Total Assets
Current Liabilities
Accounts Payable
Bonds Maturing
3 years
Bonds
Total Liabilities
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(19,015,051)
200,000
6,458,599
708,797
$
(11,647,655)
$
$
39,937,125
28,289,470
2,544,533
$
$
1,091,667
3,636,200
$
$
23,760,298
27,396,498
2,091,875
37,845,250
511,200
1,133,333
900,000
416,667
675,000
Owners' Equity
Retained Earnings
Total Equity
$
$
$
18,177,460
5,582,838
9,642,356
$
$
$
$
6,813,516
2,828,840
1,481,985
1,346,855
penalty loan problem
$
$
$
$
$
$
$
$
$
$
571,515
775,340
775,340
77,534
697,806
697,806
697,806
cash problem
short term penalty loan problem

debt schedule prob
6351455
$ 476,303
19015051
Proforma Cash Budget

Quarter Number 3
Cash Inflows
Cash sales (33% of Sales)
Accounts Receivable collected
Income from Marketable Securities
Extraordinary Gain
Sales of Marketable Securities
Issuance of:
Short-Term Loans
Penalty Loans
Two-Year Loans
Three-Year Loans
Long-Term Debt
Preferred Stock
Common Stock
$
$
$
$
$
$
$
$
$
$
TBA
$
3,181,101
6,968,067
2,656
-
Total Inflows
10,151,824
Net Flow (total inflows total outflows)

Beginning Cash Balance
Ending Cash Balance
$
$
$
(20,228,264)
1,213,213
(19,015,051)
ma Cash Budget
rter Number 3
Cash Outflows
Production Cash Flows
Materials (90% cash)
Direct Labor (90% cash)
Warehousing Fees
Other Overhead Charges (90% cash)
Accounts Payable Payments
Financial Expenses:
Short-Term Loan Interest:
Bank
Shark Loan Inc.
Intermediate-Term Loan Interest
Bond Interest
Selling and Administrative Expenses
Machinery Purchased
Capital Budgeting Projects Purchased
Plant Additions Purchased
Extraordinary Loss
Income Tax
Preferred Stock Dividends
Common Stock Dividends
Purchase of Marketable Securities
Payments and Retirement of:
Short-Term Loans
Penalty Loans
Two-Year Loans
Three-Year Loans
Debentures
Preferred Stock
Common Stock
Total Outflows
$
$
$
$
$
1,323,000
3,097,800
41,224
180,000
520,000
$
$
$
65,812
$
29,400
$
$ 1,481,985
$ 1,040,000
TBA
$ 21,790,000
$
$
77,534
$
$
$
$
$
$
208,333
$
300,000
$
225,000
TBA
$
$ 30,380,088
Details of Debt at beginning of

Quarter Number 3
Next Quarterley
Current Portion
Maturity Date Repayment
Principle
Short-term Debt
$
Total
2yr Debt
$
625,000
9 $
208,333 $
833,333
208,333 $
833,333
13 $
4 $
18 $
$
300,000 $
$
300,000
-
300,000 $
300,000
Total
3yr Debt
$
$
$
600,000
-
Total
10yr Debt
$
$
900,000
Total
0 $
42 $
10
$
225,000.00
225,000
$
$
$
$
900,000
900,000
Change in Debt for Next Quarter

New Debt
Short-term
2yr
3yr
10yr
$
$
$
$
Debt Retirement
Short-term
2yr
3yr
10yr
$
$
$
$
Repayment Totals
Short-term
2yr
3yr
10yr
Proforma Totals
$
$
1,458,333
$
600,000
$
1,800,000
6
10
14
42
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
208,333
300,000
225,000
$
$
$
$
833,333
300,000
900,000
Iterest on New Debt

Debt offering premium
Short-term
2yr
3yr
10yr
$
$
$
$
0.00%
-
Long-term
portion
416,667
416,667
$
$
$
$
$
$
$
675,000
675,000
$
$
$
$
$
$
$
$
$
$
$
$
416,667
675,000
Ratio Analysis
Qtr 2
Proforma Qtr 3
2.74 Times
2.56 Times
-4.58 Times
-4.86 Times
Liquidity Ratios
Current Ratio
Quick Ratio
Efficiency Ratios
Inventory Turnover
Days Sales in Inventory
Account Receivable Turnover
Average Collection Period
Fixed Asset Turnover
Total Asset Turnover
49.38 Times
7.29 days
5.97 Times
60.29 days
2.20 Times
1.49 Times
38.45 Times
9.36 days
5.97 Times
60.28 days
0.97 Times
1.36 Times
Leverage Ratios
Total Debt Ratio
Long-Term Debt Ratio
LTD to Total Capitalization
Debt to Equity
LTD to Equity
17.21%
5.47%
7.74%
0.21 Times
0.08 Times
12.85%
3.86%
5.67%
0.15 Times
0.06 Times
Converage Ratios
Times Interest Earned
Cash Coverage Ratio
13.61 Times
28.86 Times
2.36 Times
5.47 Times
Profitablility Ratios
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Total Assets
Return on Equity
Return on Common Equity
29.87%
15.26%
8.48%
12.67%
15.31%
15.31%
29.34%
13.97%
7.24%
9.87%
11.75%
11.75%
Du Pont Analysis of ROE

Net Profit Margin
x Total Asset Turnover
x Equity Multiplier
ROE
8.48%
1.49 Times
1.21 Times
15.31%
7.24%
1.36 Times
1.15 Times
11.38%
Altman Z score
Factors
NWC/Total Assets
Retained Earnings/ Total Assets
EBIT/Total Assets
Weights
0.2047
0.0317
0.2280
1.2
1.4
3.3
Market Value Equity/BV Debt

Sales/ Total Assets
Z-Score
13.6621
1.4937
10.73
0.6
1
Weighted Average Cost of Capital

Sources
Value
Short Term Debt

2yr Debt
3yr Debt
10yr Debt
Preferred
Common
TOTAL
$
$
$
$
$
$
$
WACC= 2.65%
Weight
1,458,333
600,000
1,800,000
65,510,000
69,368,333
0.00%
2.10%
0.86%
2.59%
0.00%
94.44%
100%
Before Tax
1.81%
1.76%
1.70%
1.59%
2.17%
2.75%
After Tax
1.09%
1.05%
1.02%
0.96%
2.17%
2.75%
WACC
0.00%
0.02%
0.01%
0.02%
0.00% risk prem
2.60%
2.65%
0.58%
NPV Analysis
Proj A
Proj B
Proj A
minus
minus
minus
=
minus
=
plus
=
Proj B
minus
minus
minus
=
minus
=
plus
=
Quarter
0
1
2
3
4
5
6
7
8
9
10
11
12
NPV
IRR
Life of Proj
2-yr
3-yr
Cost
$
$
Quarter
Sales
Var Cost
Fix Cost
Depreciation
Net Oper. Income
Taxes
Net Income
Depreciation
ATCF
Quarter
Sales
Var Cost
Fix Cost
Depreciation
Net Oper. Income
Taxes
Net Income
Depreciation
ATCF
$
$
$
$
$
$
$
$
$
499,248
482,424
1
$
$
$
$
$
$
$
$
$
(60,760)
(13,320)
62,406
11,674
1,167
10,507
62,406
72,913
$
$
$
$
$
$
$
$
$
1
$
$
$
$
$
$
$
$
$
(78,400)
8,254
40,202
29,944
2,994
26,950
40,202
67,152
$
$
$
$
$
$
$
$
$
$
$
$
$
59,250 $
5.34%
Project B
(482,424)
67,152
67,692
80,832
65,892
64,992
64,092
63,192
62,292
61,392
60,492
59,592
58,692
178,859
10.72%
Project A
(499,248)
72,913
74,929
87,349
76,729
77,629
78,529
79,429
80,329
2
(63,000)
(13,320)
62,406
13,914
1,391
12,523
62,406
74,929
3
$
$
$
$
$
$
$
$
$
2
$
$
$
$
$
$
$
$
$
(79,000)
8,254
40,202
30,544
3,054
27,490
40,202
67,692
(76,800)
(13,320)
62,406
27,714
2,771
24,943
62,406
87,349
4
$
$
$
$
$
$
$
$
$
(65,000)
(13,320)
62,406
15,914
1,591
14,323
62,406
76,729
3
$
$
$
$
$
$
$
$
$
(93,600)
8,254
40,202
45,144
4,514
40,630
40,202
80,832
4
$
$
$
$
$
$
$
$
$
(77,000)
8,254
40,202
28,544
2,854
25,690
40,202
65,892
Project Recommendation
Project A
NO
Prroject B
YES
nalysis
5
$
$
$
$
$
$
$
$
$
(66,000)
(13,320)
62,406
16,914
1,691
15,223
62,406
77,629
6
$
$
$
$
$
$
$
$
$
5
$
$
$
$
$
$
$
$
$
(76,000)
8,254
40,202
27,544
2,754
24,790
40,202
64,992
(67,000)
(13,320)
62,406
17,914
1,791
16,123
62,406
78,529
7
$
$
$
$
$
$
$
$
$
6
$
$
$
$
$
$
$
$
$
(75,000)
8,254
40,202
26,544
2,654
23,890
40,202
64,092
(68,000)
(13,320)
62,406
18,914
1,891
17,023
62,406
79,429
8
$
$
$
$
$
$
$
$
$
7
$
$
$
$
$
$
$
$
$
(74,000)
8,254
40,202
25,544
2,554
22,990
40,202
63,192
(69,000)
(13,320)
62,406
19,914
1,991
17,923
62,406
80,329
8
$
$
$
$
$
$
$
$
$
(73,000)
8,254
40,202
24,544
2,454
22,090
40,202
62,292
9
$
$
$
$
$
$
$
$
$
(72,000)
8,254
40,202
23,544
2,354
21,190
40,202
61,392
10
$
$
$
$
$
$
$
$
$
(71,000)
8,254
40,202
22,544
2,254
20,290
40,202
60,492
11
$
$
$
$
$
$
$
$
$
(70,000)
8,254
40,202
21,544
2,154
19,390
40,202
59,592
12
$
$
$
$
$
$
$
$
$
(69,000)
8,254
40,202
20,544
2,054
18,490
40,202
58,692
Results for company name: FIN-NEWS

100,000
Per unit price $100.00
Div. per common$0.10

share
Advertising cost
$0
Sales discount 0.00%
$0
$200,000

0
Machine units bought0
Units of plant bought 0
Project A
Project B
no
no
Financing Decisions
Short-term loans
$0
Preferred shares
Two-year loans
$2,500,000
Common shares
Three-year loans $0
Common tender price

$0
Ten-year bonds
$0
Special Options
Strike settlement$0.00
(per hr.)
Dollar penalty

Quarter Number 1
Sales revenue ( 97,383 units at $100.00
$9,738,300
)
2,655$9,740,955
Cost of Goods Sold:

Beginning Inventory: ( 9,809 at $74.79
$733,567
)
Materials
$1,500,000
Direct Labor
3,500,000
Total Direct Costs$5,000,000
$0
Total Direct Costs$5,000,000

Warehousing
$60,408
Costs
Depreciation:
478,125
Mach. and Equip.
Plant
1,300,000
Other Overhead
200,000
Costs
Total Indirect Costs2,038,533
Production Costs ( 100,000 at $70.39
7,038,533
)
Goods Available for Sale ( $70.78
$7,772,100
per unit )
Less: Ending Inventory ( 12,426 units
879,492
)
Cost of Goods Sold
6,892,608
Gross Profit
$2,848,347

$1,486,915
Financial Expenses:
$0
0

92,749
Bond Interest
33,600
0
126,349 1,613,264
Operating Income Before Extraordinary Items$1,235,083

Extraordinary Items
Income Before Taxes
Income After Taxes
0
$1,235,083
123,508
$1,111,575
0
$1,111,575
$1,111,575
100,000
Net Income Transferred to Retained Earnings$1,011,575

Position Statement
Quarter Number 1
ASSETS
Current Assets
Cash
$491,120
Marketable 200,000
Securities
Accounts 6,524,661
Receivable
Inventory ( 12,426
879,492units at $70.78 /UNIT )
$8,095,272
Machinery
$2,008,125
and Equipment
Plant
7,165,250
Total Fixed Assets 9,173,375

Total Assets $17,268,647
Current Liabilities
Accounts $520,000
Payable
Short Term Loans 0
Payable
Short Term Penalty0 Loan
Intermediate
1,850,000
Term Debt Maturing
Bonds Maturing
1,200,000
$3,570,000

Intermediate
$937,500
Loans: 2 years
3 years0
Bonds
1,200,000

2,137,500
Total Liabilities$5,707,500
Owners' Equity
Preferred Stock ($0
0 shares )
Common Stock
8,000,000
( 1,000,000 shares )
Retained Earnings
3,561,147
Total Equity
########
Total Liabilities
$17,268,647
and Equity
Summary Data
Quarter Number 1
Common share$43.47
price Accumulated Wealth
$43.57
Quarterly EPS $1.11 Dividend Yield 0.93%
9.78 Marketable Security
1.33%
Yield
Actual unit price
$100.00 Actual unit demand
97,383
Preferred stock$32.15
price Preferred dividend
3.11%
yield
25.75% Return on equity
38.46%
8.00% Bond call premium
8.00%
Common tender$0.00
or sell/sh
Unpaid preferred$0.00
dividend/share
Short-term 2-year loan3-year loan
Bonds Penalty loan
2.98%
3.11%
2.50%
1.40%
8.00%

2
Units forecast 101,378
90,174
124,132
111,898
Price per unit $100.37

forecast
$96.43
$110.60
$104.80

100,000
100,000
100,000
80,000
Units of machine
100,000
capacity100,000
75,000
60,000
200,000
200,000
200,000
478,125
478,125
384,375
311,250
Plant
1,300,000 1,300,000 1,300,000
989,000
Other overhead
200,000
Projects

Short-term
2-year
312,500
312,500
312,500
312,500
3-year
300,000
300,000
Bonds
300,000
300,000
300,000
300,000
Warehouse fees:
Units
First 2000 Next 5000 Over 7000
Cost/Unit
$1.00
$3.00
$8.00

Materials $15.00
Units
Machinery
$41.00
Plant
First 60,000Next 40,000Next 20,000

Over 120,000
Labor cost $39.00
$29.00
$25.00
$33.00
Bond
Preferred

Short-term 2-year loan 3-year loan
$281.00
2.00%
1.95%
1.91%
1.84%
2.40%

Short-term
$0
Intermediate
$83,030
Bonds
$33,600

Life
Cost
Unit Capacity
OverheadUnit
Saving
LaborChange/Qtr.
sav., Qtr.2 Labor Sav.
2-yr
$437,664
100,000
$14,147
$0.54
$0.02
3-yr
$634,728
120,000
-$7,395
$1.05
$0.00

Finnews Q3

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Finnews Q3

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Results for company name: FIN-NEWS

Decision Inputs for Quarter Number 2

Div. per common share

Sales revenue ( 104,001 units at $100.00 )

Total Direct Costs

Production Costs ( 100,000 at $70.07 )

Intermediate Term Loan Interest

Bond Redemption Costs

Income Tax (rate is 10%)

Inventory ( 8,425 units at $70.14 /UNIT )

Total Current Assets

Fixed Assets (net of depreciation

Total Fixed Assets

LIABILITIES AND OWNER EQUITY

Short Term Penalty Loan

Intermediate Term Debt Maturing

Total Current Liabilities

Long Term Liabilities

Total Long Term Liabilities

Total Liabilities and Equity

65.51 Accumulated Wealth

Preferred stock price

41.63 Preferred dividend yield

19.01% Return on equity

Call premium: preferred

8.00% Bond call premium

Common tender or sell/sh

36.35 Unpaid preferred dividend/share

Outstanding debt yields:

INFORMATION FOR FUTURE QUARTERS:

Price per unit forecast

Units of plant capacity

Units of machine capacity

Production costs per unit next quarter:

Interest due next quarter:

Capital budgeting projects for next quarter:

Per unit price

Risk of S-T investment

Common tender price

Unit CapacityOverhead Saving Unit Labor sav., Qtr.3

Change/Qtr. Labor Sav.

Decision Inputs for Quarter Number 2

Per unit price

Strike settlement (per hr.)

Risk of S-T investment

Quarterly Performance Report

INFORMATION FOR FUTURE QUARTERS:

Rates on funding in quarter 3

Interest due next quarter:

Direct Labor Cost Table

Unit Capacity Overhead Saving Unit Labor sav., Qtr.3

Direct Labor Cost Table

Direct Labor Cost

Production Plan for next 4 Quarters

Over Prod Limit

Over Prod Limit

Unit Sales Forecasts

Unit Price Forecasts

Per Share Reciepts

Proforma Decisions for next quarter

Company Operating Decisions

Per unit price

Risk of S-T investment

Proforma Quarterly Performance Report